Organizational Shakeup in U.S. Unit of Deutsche Bank Expected (DB)

Seeking to avoid potentially expensive financial regulation, Deutsche Bank (NYSE: DB) is planning to restructure its U.S. operations, the Wall Street Journal is reporting.

Multiple banks with a U.S. presence have had to alter operational strategies in light of the Dodd-Frank Act financial bill.

The Wall Street Journal report notes that "Deutsche Bank executives were concerned the bank would need nearly $20 billion to offset losses at its main U.S. unit, Taunus Corp, the Journal reported, citing an internal document at the bank."

Taunus would give up its bank-holding company status, the WSJ reported, citing unnamed sources. Deutsche Bank Trust Corp. would be moved out of Taunus and become a direct subsidiary of the German bank.

The German lender presented its plan to the Federal Reserve last year, the paper also reported.

Shares of Deutsche Bank closed lower by $0.39 on Tuesday, to $61.01.